Problem 2 10 marks Refer to the following information for three firms from the same industry....
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Problem 2 10 marks Refer to the following information for three firms from the same industry. Due to some macroeconomic changes, demand for the product sold by this industry substantially increased in 2019 compared to the previous year. Firm A Firm B Firm C Revenue 2019 BDT 500,000 2018 Receivables .45 BDT 100,000 1.8 2019 BDT 250,000 2018 BDT 125,000 2019 BDT 450,000 2018 BDT 150,000 6.7 7 4.2 4 Turnover a. Which company will have the lowest Days Sales Outstanding and why? Limit your answer within 30 words. 4 marks b. Based on the information provided in the table, very briefly comment on the firms' efficiency. Which firm was most efficient? Which firm was least efficient? Why? Limit your answer within 100 words. 6 marks Problem 2 10 marks Refer to the following information for three firms from the same industry. Due to some macroeconomic changes, demand for the product sold by this industry substantially increased in 2019 compared to the previous year. Firm A Firm B Firm C Revenue 2019 BDT 500,000 2018 Receivables .45 BDT 100,000 1.8 2019 BDT 250,000 2018 BDT 125,000 2019 BDT 450,000 2018 BDT 150,000 6.7 7 4.2 4 Turnover a. Which company will have the lowest Days Sales Outstanding and why? Limit your answer within 30 words. 4 marks b. Based on the information provided in the table, very briefly comment on the firms' efficiency. Which firm was most efficient? Which firm was least efficient? Why? Limit your answer within 100 words. 6 marks
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